Entrepreneurship and Small Business: Venture Types & Economic Impact

This report provides an overview of entrepreneurship and small business management, exploring different types of entrepreneurial ventures and their impact on the economy. It discusses the concept of entrepreneurship, highlighting serial, social, and female entrepreneurs, and examines various venture typologies, including small business, saleable start-up, large company, and social entrepreneurship. The report also analyzes the similarities and differences between entrepreneurial ventures, focusing on lifestyle, serial, female, and male entrepreneurs. Furthermore, it assesses the impact of micro and small businesses on the UK economy, providing statistics and data on their contribution to employment, turnover, and gross value added. The report concludes by emphasizing the importance of small businesses and examining the nature and characteristics of private, sole, and partnership firms. Desklib is a platform where students can find similar reports and study materials to aid their learning.

Entrepreneurship and Small
Business Management

INTRODUCTION
Entrepreneurship is like the heart of every business. Each and every large company start
with a small business carried by entrepreneur. Entrepreneurship and the small business
management is the sequence that is designed to build strong skills in the entrepreneur
Entrepreneurship is more than a mere creation as it is related to the seeking opportunities of the
business so that they can take risk beyond security. Entrepreneurship is a creative concept that
permeates an individual business in a more innovative manner so that they can make their
business more successful than others and will be able to retain in the market for a longer period.
In the first part of the report the discussed things are the range of venture that might considered
entrepreneurial. In the second part of the report the impacts that small businesses leave on the
economy.
TASK 1
P.1 Types of entrepreneurial venture related with typology
Concept of Entrepreneurship
The concept of entrepreneurship provides an understanding that it is must for the business
success as the persons ready to bear the risk for the growth and the upliftment of the company.
Entrepreneur is a person who set up the business by taking the financial risk in order to get
recognition in the market so that they can earn profit and will be able to retain in the market for
longer period (Ebert., 2014). Entrepreneur is a promoter who promotes the business in all the
way possible as they hope for the profit that is must for the survival for the business. Serial
entrepreneurs are those entrepreneurs who pays all the attention on the innovation as according
to them this is the only thing that is required to make the business more successful than others.
They follow the typology in order to achieve efficiency in the innovation. Social entrepreneurs
are those entrepreneurs who pays all the attention towards the welfare of the society as their main
aim is to solve the problems that are occurring in the economy. They follow the typology of
solving the economic problem as they set up with the aim of helping the needy ones. Female
entrepreneurs are those entrepreneurs which has all the quality of them as they are also very
professional in their work. They strictly follow the typology of professionalism as they work
with full honesty and concentration.
Typology with examples

There are many types of entrepreneurial venture as they are the task that are done by the
entrepreneurs so that they can make their business more successful and they can retain in the
market by achieving position and success. Furthermore, the typology as it is the method doing
the venture so that they can defeat their competition in the targeted market. They are as follows: Small business entrepreneurial venture: It is a venture that is start by an individual and
runs business with a very limited resources sand planning. An individual Set up a venture
as he wants to show that he has limited resources but the best creative or innovative idea
to carry the business more successfully than others. They are anyone who runs his or her
business individually. They hire the local employees or family business to run their
business. This relate to the typology of entrepreneurship as this give the definite the
method to carry on the business more successfully. Saleable start-up entrepreneurship: In this type of entrepreneurship the entrepreneurs
know from the day one that their customers have the power to change the world so from
day one take care of every action that is taken by them so that they can retain in the
market by creating a very strong customers support. They also give their best in attracting
the investors for their business so that they can become financially strong and runs the
business successfully in the market. This relates to the typology of entrepreneurship as
they are the methods and helps in resolving the problems occurs. Large company entrepreneurship: Large companies have finite plans as they already
know that what is to be done by them in what manner so that they can run their business
by earning profit and maintaining the position in the market. Their growing completes
depend on their sustaining innovation as they offer many products at a time with lots of
variants from the core. Changes in the tastes and preferences of the customers will affect
their business but if they adopt all new technology and give all priority to their customers
then this will help them in running their business efficiently in the market. This also
relates to the typology as this tells the large companies that what are the measures is
going to be the best so that they can defeat all their competitions by taking corrective
measures.
 Social entrepreneurship: Social entrepreneurs are the innovators or creators who focus
on creating products and services for the welfare of the society as there are many people

who can't afford anything, so these types of entrepreneurs produce goods and services to
help those people who are actually very needy. Their main aim is to solve the problem of
economy in the whole world so that they can get the better options for other. This relates
to the typology as this gives the ways to it that how they can support the society in the
best way possible.
Typology of business enterprise can particularly identify with the entrepreneurial
endeavours. Typologies helps in understanding the connection between the subject and its writes
so the typology of business helps in better understanding the entrepreneurial endeavours. These
typologies cause the business people to pick the key component of their business association,
what exercises are to be performed, how to utilize the rare assets, to take legitimate choices, to
improve the association and typology additionally enhances productivity and viability of the
execution of the business. Thusly typology of business enterprise can assist the or can identify
with entrepreneurial ventures by helping them to accomplish their objectives and destinations.
P.2 Similarities and Differences between entrepreneurial venture
There are various entrepreneurs that are getting success in the world. Male entrepreneurs
are considered to be more practical in comparison to women. Further, they are risk taking and are
considered to be task oriented managers. In case of female entrepreneurs, they are less risk
taking, concentrate on detailed information and less willing to fail in a particular business. For
instance, it will be easy for a male entrepreneur to bear risk rather than that of female
entrepreneur.
Lifestyle ventures business
Similarities
Serial entrepreneur’s ventures
These business ventures are usually start-up
with new business concept and ideas.
Also, established by individuals who take
challenges continuously by generating new and
innovative business prospects
Difference Differences
Operations of business remains in hand of
individual who has started the venture.
Serial entrepreneurs usually delegates the
responsibilities to others after establishment of
business venture.

Female entrepreneur business similarities Male entrepreneurs business similarities
Mainly objective behind establishment of
business is to gain profitability and recognition
from people.
They also have similar objectives of earning
profits and recognition by introducing new and
innovative business idea prospects.
Difference Differences
Female entrepreneurs counterparts always
tends to be old. For example: Martha stewart,
who was a model, stock broker and caterer
before he has started a product empire.
Male entrepreneur always tends to be young.
For example: Mark Zuckerberg was a college
drop out student and he started Facebook in
Harvard dorm room.
TASK 2
P.3 Impact of micro and small business on the economy
Micro and small businesses are the business that are carried by the individual with his
own idea and resources as he or she also wants to enter the market. They set up their own
business with the innovative idea and this innovative idea will help them to earn profit in return
of their investment and achieve the position in the market. There is a very deep impact of them
on economy as in the whole world there are many small vendors who sells the goods of the large
company. They act as a mediator for the company and provide their product to the public by
communicating with them. This impact shows the statistics and data of these small business.
Statistics divides the small business enterprise into two types dependent and independent and
data of this will be according to their nature. Dependent enterprises are more important than an
independent enterprise as they provide the employment opportunities to the public according to
their skills especially in the smaller country. However, they are also significant with account of
43%of GVA created by small business enterprise. They employ 34% of the total population of
the country to improve the economic condition. Independents small business are very often part
of a group. This is most common manufacturing and lesser degree in the knowledge about the
market.
Micro business is an entity that is operated at a very small scale. These business are
commonly sole proprietor and do not own more than five employees in it, including owner.

However, small business can be described as for-profit organization which is owned
independently. It has more than 5 employees and less than 500 employees at the work place. The
number of employees totally depends on the type of industry in which it is functioning and what
type of product is produced by the organization.
Impact of Small business in the UK: In 2016, There were 5.5 million small business enterprise
in the UK, up by 97,000 or 2%since 2015. Since 2012, The number of small businesses in the
UK has increased each year by 3% on average. In 2016, there were 2.0 million more small
businesses than in 2000, an increase of 59% over the whole period. The number of small
businesses has grown by more than the number of all businesses 77% compared to 59%.
The usual definition of small business is fewer than 250 employees. There were 5.4 million small
business in the UK in 2017, which was over 99% of small businesses. Micro business has 0.9
employees. There were 5.3 million micro economics businesses in UK in 2016. There is only
40% of the employment in the small business. The turnover is 33% and the percentage of
businesses is 99.3%.
So, by considering the above it is very clear that the micro and the small businesses have a great
impact of the economy as it affects the gross domestic product and generates the employment
opportunities for the public as the rate of small enterprises are increased in 2017 than 2016. Their
turnover is affecting the economy as they are now many in the market and if we add all of their
turnover together than it is more than the large companies.
Nature and characteristic of private, sole and partnership firms:
Private Sole Partnership
Nature This is owned and
managed by private
businessman or
shareholders
This is mainly owned
by single person who
is the owner and
manager of that firm.
This is owned and
managed by 2 or more
person who are sharing
profits and loss in their
capital sharing ratio.
Characteristic There are many small
owners of this type of
business who are
known to as
Only on per son who
is the owner of
business is having all
kinds of legal and
All the partners of
firm are equally
responsible for profit
and loss of firm.

shareholders of that
business.
regulatory liabilities
regarding firm.
P.4 Importance of small businesses
Small business is very important as their contribution in the economy is very huge as they
help by communicating to the public and generates the employment opportunities for them.
Some importance of small business are as follows: Contribution: In small business the liability and the proprietorship is held by only one as
it is the business of an individual. In this there is not more than 500 employees and
represents the 99.7 percent of the employer firms. Since 1995, small business has
generated 64% new jobs this leads the social economy of the nation towards growth after
Brexit as it paid 44% of the total United Kingdom. Innovation practice and its
performance implications in small and medium enterprises (SMEs) in the manufacturing
sector: a resource‐based view. There is a huge contribution of small business in the social
economy as it provides employment to the public. Brexit is withdrawal of membership
of UK from European Union. The main opportunity of Brexit is that it will help the
country in becoming more open to the innovative and creative ideas of doing business.
Further, now the country can opt for following its own law rather than depending upon
European Union law. It can set its own targets in order to sustain in the market place.
However, there are certain threats to UK due to Brexit as well. The country will no more
be able to trade with the member states of European Union due to trade barriers. It can
lead the nation to drown into losses. Further, it can be ascertained that most of the
employees which are skilled have been gathered through other member states of EU.
Brexit can reduce or barricade migration of skilled labour to UK. Economic growth: Small business help the economy in its growth as it gives all the
essential resources to the economy which are required in the growth and expansion.
Small business contributes to the economies by bringing growth and innovation to the
society in which business is established. It is providing employment opportunities to
people who may not be able to get the employment from the large corporations. They
attract many talents who invents new and innovative product or implement the existing
ideas with new solutions. Large corporations depend on the small business as they

provide the base to them as that they can grow by the existing products by adding only
few things with the help of the technology in the market. This is how the small business
contributes in the growth of the social economy after Brexit. Adaptability to changing climates: In small business there are many things that are to be
adopted by an individual so he or she can make his place in the market. They also have
the ability to respond and adapt things quickly in he changes climate in the market. They
are customer oriented as in their critical time their loyal customers are the only supports
as they are the one who buys the product from them (Dennis. 2011) . They generate less
revenue than large corporations but if we add all together then they earn more that large
corporations and that is how they support the economy and shows the path of growth and
development. Schools and Local government offices: Customers move towards small business only
when they have faith in them and for that they need to make their goodwill first then only
they will be able to target the customers. These businesses will generate high revenue
which means they pay the higher taxes including all and this will help them in the growth
of the social economy. The economy will earn more by charging fine and allowances
according to departments.
 Future growth: Small business do not always stay small as by the time they will get the
opportunity of growth and expansion in the market because many large corporation of
now started off as a small business. May small business grow by the time and contribute
more towards the economy as if the economy does not grow then the corporations will
not get a chance to grow in the market (Dennis Jr., 2011).
So, by considering all the above factors the small business is very important as it contributes in
the growth of the social economy after Brexit.
Brexit:
On the 23rd of June 2016 with about 51.9% of voting in favour of Britain leaving EU the
Prime Minister of UK Theresa May announces that UK by 29th March 2019 would be leaving
European Union. UK was the part of EU from 1973 but now they decided to leave EU which is
regarded to as Britain's Exit from EU. So all the policies and laws which it was following and all
rebates which they were getting would not be given to them after they would not be enjoying
them.

Start-up business are those type of firm which are been invested their money for the first
time in any type of project or model thus making it scalable. While on the other hand small scale
business are those which are having very small scale business in terms of revenue and profits.
Brexit would be regarded to as serious threat to whole economy of UK which could be
taking into its effect majorly to small and new enterprise. Starting with the estimates that leaving
would be a net loss to the UK economy, one analysis often cited is from researchers at the
National Institute of Economic and Social Research in 2004. They found an exit from the EU
would permanently reduce UK GDP by 2.25%, mainly because of lower foreign direct
investment. That estimate is now old and the world economy has changed considerably in the
past decade.
TASK 3
P.5 Characteristics, Traits and Skills of entrepreneurs
Characteristics:
Self-confidence: It is the first and most important characteristics that an entrepreneur should
have as this shows the calibre of the person that how much he is capable of doing something out
of nut shell. Steve jobs was an industrial designer with a great self-confidence as he was the co-
founder of apple and many things and give the whole world many facilities by exploring his
talents. Bill gates is a chairperson of Microsoft and rules the world by his intelligence and
confidence. He is one of the best entrepreneur in all around the world.
P resistance: It is the quality and state of being persistent that means the continuous existence of
something. Bill gates is a very strong and persistent entrepreneur as he is very continuous in his
work. He is very dedicated person and also very passionate about his work. Steve jobs was very
passionate about his work as he was continuously engaged in his work.
Skills:
Innovative: It is specialised skill that helps the person to grow in the better and in the best way
possible. Bill gates is a very innovative person as he changes the technologies in the Microsoft
time to time according to the need of the situation with the help of his specialise professional
team who implements his plan. Steve jobs was an entrepreneur used his ski006Cls to make apple
mare successful by his innovative idea. He used to share his innovative idea with his team so that
his team can achieve their goal with the help of this (Hall, Daneke and Lenox., 2010).

Leadership: Leadership is a quality that helps in achieving goals very efficiently. Bill gates is a
great leader as it leads his team with the innovative ideas and tell them what to do with the
situation. Steve jobs was a great leader as he knew that what person has what quality and who
can perform which task, so he went accordingly and defines a good leadership.
Traits:
Passionate: This is the word used for the person who is very ambitious and ready to face any
challenge to achieve the success in life. Bill gates is a very passionate though he is the richest
person of the world but still he is the one who faces new challenges for more success in the life.
Steve jobs was very passionate as he was ready to face anything for his work and never gets
afraid of anything.
Status: It is the word used for defining success rate of a person in his life as this leaves a great
impact on the person's mind. The status of the bill gates is the highest in the whole world as he is
the most successful and the richest person of the world. The status of Steve jobs was very high as
he was one of the most successful among the world (Terziovski., 2010).
The entrepreneurs are different from managers in all the way as the managers only look after the
activities that are done by his subordinates and report to the management whereas the
entrepreneurs are the one who manages all along with doing many activities at a time.
Bill gates is a voracious reader: As the successful entrepreneur have the habit of excess reading
of new things which can be implemented on their life and help in organisation planning and
proper development can be carry out. He reads 50 books per year.
Bill gates does not abide by rules: it is the most important characteristic in the bill gates does
not focus on the rules and regulation. He wants just perfection in their work and expected will
same with employees.
Steve Jobs had ample of confidence in his steps: It is one of the important characteristics that
must be present in an individual. Steve Jobs happened to have utmost confidence and belief his
step which helped his to pave his path of success.
Ordinary business manager may not able to have all the qualities that were actually
present in Steve Jobs and Bill Gates. Ordinary managers are not able to handle their own steps
and do not carry confidence in their belief which separates them from opting for a risk-taking
behaviour. Moreover, the journey for every business management can be different hence, it

becomes important to get motivated from other business professional and however perform their
activities which is best suited for their own business.
P.6 Entrepreneurial motivation and mindset
There are many personality traits that are used by an entrepreneur to keep himself
motivated and make a strong mind set to take all type of risk for their business. Passionate is the
first personality trait as it shows that how much an entrepreneur is passionate about his work and
what he can do to be on top after defeating all. Passion helps in motivating their self as this
gives them a reason to be the part of the work but perform individually so that they can achieve
their personal goal faster than others. Passion gives a mindset to a person so that he is ready to
take any risk for his work so that he can make his career more successful than others (Blackburn,
Hari and Wainwright, 2013).
Status of an entrepreneur defines everything about them as this is the word used to clarify how
the person is successful in his career. Status motivates an entrepreneur by giving reason to
perform their best in the work so that they can be more successful. It also motivates them by
showing the path towards success. The personality traits of the people define that how much he
is focused about their work so that they can be on top as faster than they can. Status sets the
mind of the entrepreneurs as it gives definite reasons to opt a particular task to achieve
something in the life by setting a finite goal for future. So, the personality traits reflect the
motivation and mindset of an entrepreneur as it tells them what they should go for and what
should they avoid.
Bill gates confidence level is very high, and this is the factor that motivate it to large
extent to take risk in the business. It must be noted that Bill gates himself open IT business and
carry it to large level and this happened because of its high confidence level. Due to high
confidence it feels motivated. On other hand, Steve jobs is another person that feel highly
motivated because same have some of the principles and it strictly follows these principles as
guidelines in its business. All these things keep Steve Jobs motivated even in difficult times. It is
interesting fact that Steve Jobs was thrown from his own company by its co-workers as they
think that he is taking wrong decisions. Then also Steve Jobs motivation level does not reduce,
and he open new company which latter become part of Apple and play an important role in its
growth. Second other main difference between both is that Bill gates is passionate about taking
risk in its life and due to this reason, he does not resist to change and take actions time to time